lng

India has reportedly rejected Russian lng cargoes under US sanctions, despite energy security worries. A sanctioned Russian lng shipment is now stranded near Singapore as India navigates compliance risks. While India continues to import Russian crude, lng is harder to conceal from global tracking systems. Discussions are ongoing for non-sanctioned Russian supplies.

A prolonged closure of the Strait of Hormuz could trigger a severe global energy crisis, potentially pushing oil prices to $200 per barrel by late 2026. Wood Mackenzie's report outlines three scenarios, with the worst-case predicting a significant economic contraction. This warning echoes Iran's own earlier predictions amid escalating regional tensions.

Pakistan is foregoing urgent lng purchases, betting on a swift de-escalation of Middle East tensions and the timely arrival of cheaper Qatari shipments. This risky strategy comes as the country faces a significant gas deficit and widespread electricity outages, exacerbated by disruptions in the Strait of Hormuz.

India has requested the US to extend its waiver on Russian oil imports due to ongoing disruptions in the Strait of Hormuz. This waiver, crucial for stabilizing oil markets, is set to expire on May 16. Despite US pressure to reduce discounted Russian oil purchases, India prioritizes stable energy supplies, warning of economic consequences from market volatility.

The proposed Middle East-India Deep-water Pipeline (MEIDP) is planned as a 2,000-kilometre underwater network running beneath the Arabian Sea and connecting Oman directly with the Gujarat coastline.

Union Minister Hardeep Singh Puri assured stable fuel and cooking gas supplies, stating the country holds 69 days of crude oil and lng reserves and 45 days of LPG. Daily LPG production has been significantly increased to 54,000 tonnes amid Middle East geopolitical tensions. Puri also echoed Prime Minister Modi's call for austerity to mitigate economic pressures.

India has reportedly sought an extension from the US to continue importing Russian oil, with the current waiver expiring May 16. The Congress party has sharply criticized PM Modi, accusing his government of "trading away India’s honour and dignity" and compromising energy security by "groveling before America" for permission.

Britain is recalibrating its approach to Russian oil imports by introducing restrictions on refined products at a measured pace. This strategy, driven by escalating energy market volatility linked to conflicts in the Middle East and climbing fuel prices, seeks to mitigate the risk of abrupt supply shortages.

India's crude oil security is set for a significant boost as the UAE's ADNOC agrees to increase crude storage to 30 million barrels. This move will add over four million tonnes to India's existing strategic reserves, enhancing energy supply stability amidst regional conflicts. Agreements also explore lng and LPG storage, strengthening India-UAE energy ties.

India and UAE have signed a key agreement to bolster energy security, including potential storage of ADNOC crude in India's strategic reserves and development of new facilities at Chandikhol, Odisha. This collaboration aims to enhance India's crude storage capacity and mitigate supply disruption risks, with the Chandikhol project expected to create thousands of jobs.

India and the UAE solidified their friendship with seven key agreements during PM Modi's visit. These pacts focus on energy security, including strategic petroleum reserves and LPG supply, alongside a significant defense partnership. Further collaborations will boost India's maritime sector and establish a supercomputer cluster, with the UAE committing $5 billion in investments.

Disruptions in the Strait of Hormuz have significantly impacted global bunker fuel supply, leading to soaring prices, particularly in Asia. This is forcing shipping firms to cut speeds and explore alternative fuels, with experts warning of increased freight costs and consumer prices.

The two sides also signed a memorandum of understanding related to strategic petroleum reserves, along with an agreement concerning supplies of liquefied petroleum gas (LPG).

The government increased fuel prices by Rs 3 per litre to support oil marketing companies facing losses due to high global crude oil prices and a weakening rupee. However, further rupee depreciation could negate these gains, with companies incurring significant daily losses. The price hike offers limited relief, covering only a fraction of projected losses.